Shares of Fusion Micro Finance were trading in the red and 2% lower during the early trading hours on 13 December after reports hit that the private equity firm Warburg Pincus was planning to divest in the company through a block deal.

According to the media outlet CNBC-TV18, Warburg Pincus was likely to share its take in the company worth around Rs 1,000 crore.

The equity firm holds a 39.22% stake in the company through its subsidiary, Honey Rose.

Warburg Pincus has recently entered a selling spree following the bullish market created by the results from the state elections as a means to take home a bigger chunk of profits.

The equity firm has already pared its stake in IDFC First Bank, Computer Age Management Services, and Bharti Airtel in the past week. Overall, the private equity firm has offloaded shares worth over rs 5,000 crore.

In its quarterly report for July-September, the company reported a 32% year-on-year increase in its net profit to Rs 126 crore for the quarter from Rs 95 crore reported in the same quarter last year.

The total income of the company stood at Rs 571.26 crore during the quarter, which is a 26% YoY increase from Rs 452.3 crore reported in the same quarter during the previous fiscal year.

At 3:30 pm, the shares of Fusion Micro Finance closed 1.49% higher at Rs 575 on NSE.